Intercultural Management

Effective Communication in a Global Environment

Global Business

Intercultural Myths

• The Global Village Myth: the world is homogeneous;

• Universality Myth: underneath our differences, we are all really the same.

Can Most People be trusted?• United States 55%

• United Kingdom 49%

• Mexico 30%

• West Germany 19%

• Italy 1%

Culture Influences Values and Attitudes

Values and Attitudes influence Business Behavior

What is culture

Observable behaviour

Values and assumptions

Layers of culture

Language, food, dress religion, buildings,

fashion, art

Right or wrong

Good or Bad

Assumptions about existence

Levels of uniqueness in mental programming

(Hosfstede)

Personality

Culture

Human nature

Specific to individual

Inherited and learned

Specific to group or category

Learned

Universal Inherited

Cultural differences

Type of culture

How we relate to people

How we relate to time

Low context

High Context

High-Context Cultures

• No clear separation of business and private life

• Long lasting relationships• Implicit communication• Loyalty to people of authority• Spoken agreements• Outsiders do not gain entry easily• Negotiations slow and ritualistic

Low Context

• Business is separate to private life• Relationships are short in duration

(functional)• Explicit communication• Authority is diffused• Written agreements supported by law• Outsiders are encouraged to join inner

circle• Negotiations structured with participant

roles clearly defined

A Context Continuum

CHINA

KOREA

JAPAN

VIETNAM

ARAB

GREECE SPAIN

ITALYFRAN

CEUK

USA

SCANDINVIA

GERMANY

FINLAND

Lewin’s Circles

PRIVATE

PUBLIC

G- type high context Europe

PRIVATE

G- type high context China Japan

PUBLIC

Lewin’s Circles Continued

PUBLIC

PRIVATE

Car

Chambers

TennisClub

WorkChoir

Fridge

U-Type Low Context

Lewin’s Circles Continued

PUBLIC

PRIVATE

Chambers

TennisClub

Work

Choir

U-Type Low Context Europe

Relationship with people

Individualism Communitarian

Neutral Emotional

Universalism Particularism

Achievement Ascription

Individuals

• Use of the “I” form in communication• Instant decision making by representatives• Achievement is personal• Individual assumes responsibility for actions• Job Mobility and staff turnover high• Pay for performance and individual

assessment accepted• Risk taking admired (link to entrepreneurship)

Communitarians

• Risk avoidant

• Use of the “we” form

• Decisions referred back by delegates to organisations

• Achievement is group based and joint responsibility is assumed for actions

• Loyalty to organisation important

• Group incentives and team work expected

IndividualismEncouragesindividual freedom andresponsibilityHowever…

..

Encouragesindividual freedom andresponsibilityHowever…

..

We don’t want to degenerateInto self-centredness, so we Must……

Communitarianism

Encourage individuals toWork for consensus in the interestOf the group although……

Encourage individuals toWork for consensus in the interestOf the group although……

We need to avoidConformism and slowDecision making, so we must….

We need to avoidConformism and slowDecision making, so we must….

Verbal Communication

Low-Context A B

High-Context A B

Oriental AB

Tone Of Voice

Low-Context

High-Context

Oriental

Neutral Cultures

• Hide emotions• Cool and controlled behaviour is admired• Physical contact and strong expression of

body language is taboo• Tension and stress is often seen in body

language• Emotions that are controlled may

sometimes explode

Affective Cultures

• Thoughts and feelings are expressed verbally and non-verbally

• Expression of disagreement is uninhibited

• Lively discussion with lots of emotion admired

• Frequent physical contact and open expression of body language permissible

Universalist

• Rules, regulations and procedures very important

• Agreement is usually supported by legal contract

• There is the law, and that is that

• A person’s trustworthiness is based on honouring their word or contract

Particularist

• Relationships more important than rules

• Legal contracts and be easily modified

• The law is relative

• A person’s trustworthiness is based on whether they respond to changing circumstances

Achievement

• Titles are only used when relevant

• Respect for hierarchy is based on effectiveness and ability of jobholder

• Senior managers may be of varying age and gender

• Senior managers hold their position based on competence and qualifications

• Low power distance

Ascription

• Extensive power distance• Titles used extensively to indicate status in

organisation• Respect for hierarchy is required to

demonstrate commitment to the organisation

• Senior managers are usually male, middle-aged and qualified by background, formal qualifications and connections

Time

Sequentially

Synchronically

Past Present

Future

Nonverbal Sensitivity

• Greetings • Eye Contact• Space • Touch • Posture• Facial expressions• Timing• Silence• Gestures

Resolution

Respect Knowledge

ToleranceUnderstanding

Cooperation